ZIMRA Tightens Tax Compliance Rules for Trusts and Family Estates

The Zimbabwe Revenue Authority (ZIMRA) has intensified its tax compliance drive targeting trusts, family estates and corporate structures, warning that entities failing to register and file returns could face heavy penalties under new enforcement measures.

The latest developments were discussed during a recent Zimbabwe Broadcasting Corporation World of Business programme featuring corporate tax expert Simbarashe Hamudi. The broadcast examined how the new compliance measures will affect trustees, business owners, and property holders across Zimbabwe.

The full interview is available on the ZBC World of Business YouTube feature.

According to Public Notice 19 of 2026 and Public Notice 29 of 2025, all trusts and trustees operating in Zimbabwe are now required to register with ZIMRA, declare income and comply with tax obligations. Hamudi explained that once a trust is registered at the Deeds Office, trustees have a strict 30-day period to register the entity with ZIMRA.

“If a trust begins generating income, whether through rentals, investments or business activities, it immediately falls within the tax net,” he said during the programme.

Authorities also clarified that inactive family trusts that later begin commercial activities such as renting out a property must register for tax purposes within 30 days of commencing operations.

Under the framework discussed during the broadcast, active trust income is generally taxed at the corporate income tax rate of 25%. Trusts generating commercial or rental income exceeding US$25,000 annually may also be required to register for Value Added Tax (VAT), currently set at 15%. The programme further highlighted that transferring family homes, buildings or shares into a trust structure may trigger Capital Gains Tax (CGT), since the transaction is treated as a disposal under Zimbabwean tax law.

According to Hamudi, trustees seeking to reduce CGT liabilities must retain proper supporting documents and original receipts to prove historical acquisition and improvement costs. Trusts employing workers or operating broader commercial activities may also be required to manage PAYE and withholding tax obligations.

The tax compliance campaign comes as the Government continues integrating data systems between the Deeds Office, company registries, banks, and ZIMRA. Officials say the system integration aims to improve transparency and reduce tax evasion ahead of Zimbabwe’s broader economic reform agenda toward 2030. Hamudi noted that many people wrongly assume trusts automatically shield assets from taxation.

“There is now real-time sharing of information between key institutions. Once a trust or company is registered or modified, ZIMRA can immediately detect that activity,” he said.

The expert also warned that ZIMRA may conduct investigative audits where authorities suspect undeclared rental income or hidden commercial activity within family properties.

Authorities warned that trusts failing to register or submit statutory monthly returns could face penalties of US$30 per day for each outstanding return, capped at 91 days. Meanwhile, the government has extended the national company re-registration exercise until 2028. Corporate entities that fail to comply by the deadline risk being automatically struck off official company and banking registries.

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